The OSS (One-Stop-Shop) procedure is an EU-wide VAT system that simplifies reporting and payment for businesses selling goods or digital services to consumers in other EU countries. Instead of registering for VAT in each country, sellers can handle everything through their local tax authority.
Participation in the OSS procedure is optional. However, businesses that regularly sell to consumers in other EU countries benefit significantly by avoiding multiple VAT registrations.
What are the advantages of the OSS process?
The advantages of an OSS module include
- One central VAT registration for all B2C cross-border EU sales
- Simplified quarterly VAT filing through a single portal
- Centralized payment to the home tax authority, which redistributes to relevant EU states
- Reduced administrative effort for online sellers
How do OSS payments work?
Paying VAT is the final step in the OSS process. Here’s how it works:
- Registration: EU businesses register through their national tax portal (e.g., the BZSt Online Portal in Germany).
- Document sales: Sellers must log all cross-border B2C sales, including net prices, VAT rates, and destination countries.
- Report sales: A quarterly OSS VAT return is submitted through the OSS portal. Sales and VAT are broken down per EU country.
- Make payment: One VAT payment is sent to the local tax office. It forwards the respective amounts to the destination countries.
